ADA price has been recently fluctuating between higher resistance points and lower support levels.
Despite a recent negative performance, Charles Hoskinson’s Cardano (ADA) has shown notable resilience beneath the surface. The total value locked (TVL) in DeFi apps on the network has doubled compared to its peak during the 2021 bull market.
However, only 31% of ADA holders are in profit, with 1% breaking even and 68% experiencing losses, according to the data by IntoTheBlock. This distribution highlights a continuous market struggle after Bitcoin’s all-time high in March.
As per the latest data, 28% of ADA’s circulating supply is held by large investors, including whales (addresses holding over 1% of the supply) and smaller large holders (addresses holding between 0.1% and 1%). Interestingly, this moderate whale control is not a good sign for the altcoin often dubbed as an Ethereum killer.
Moreover, the past week has witnessed a big volume of $34.76 billion in large transactions. This metric, which tracks the total volume transferred in transactions crossing $100,000, underscores active high-stake engagements in ADA. Notably, such large-scale investors’ activities can reflect both inflows and outflows.
Earlier on Monday, Cardano recorded a trading volume of $195 million and a market cap of $14.6 billion. The token’s price continues to trend downward, aligning with broader market declines. Currently trading at around $0.40, ADA has experienced a 7% decrease over the past seven days, consistent with a pattern of lower highs since early June.
Technical Indicators
Technical indicators reveal a nuanced picture of ADA’s market stance. The Bollinger Bands on the chart are relatively tight, suggesting low volatility. Notably, the token’s price oscillates closely around the middle band, indicating a consolidation phase due to lack of strong bullish or bearish momentum.
The Moving Average Convergence Divergence (MACD) indicator reinforces this sentiment, flatlining at zero. However, the presence of numerous double-top formations on the chart is typically recognized as bearish reversal signals. These formations, along with Cardano’s price being below all major moving averages, indicate an overall downward momentum.
ADA price has been fluctuating between higher resistance points and lower support levels. Each attempt at recovery faces significant resistance, preventing the establishment of new highs and resulting in lower peaks. ADA would have to break out of this current trend for any major upward rally. As the token navigates through these important levels, its future price will depend on broader market conditions and the highly anticipated altcoin rally.
On the other hand, the Relative Strength Index (RSI) oscillates between 50 and 60, indicating a neutral market sentiment with a slight bullish inclination.
Meanwhile, the broader crypto market is showing bearish sentiment as the week begins. Bitcoin is trading around $66,180, down 4.5% over the past seven days. Ethereum also had a slow start, trading at approximately $3,550 with no significant change in the last 24 hours.